Skype was founded by the guys who took over the music piracy game from napster (Kazaa) after napster took the hit.  They sold to ebay who failed to make it work and now Skype is back on the block with a “mixed history as an operating business”. Sure, it had $860 million in revenue last year but it had $680 million in debt and posted a $7 million loss.  In fact, according to the WSJ it has posted little net profit in its 8 years of business. So how much to you pay for an underperforming tech company with an unsure revenue stream and a lot of debt?

If you’re microsoft you pay $8.5 Billion.